LegalZoom.com Investor Presentation Deck
Lz Reconciliation of GAAP Net Income (Loss)
to Adjusted EBITDA
FYE Dec 31, $K
Net income (loss)
Interest expense (income), net
Provision for (benefit from) income taxes
Depreciation and amortization
Other (income) expense, net
Stock-based compensation (¹)
Loss on debt extinguishment
Impairment of goodwill, long-lived & other assets
Impairment of available-for-sale debt securities
Impairment of other equity security (2)
Acquisition or transaction related expenses
Restructuring costs(³)
Legal reserves and settlements (4)
IPO-related costs(5)
Certain other non-recurring expenses(6)
Adjusted EBITDA
Revenue
Adjusted EBITDA margin
2,429
6,127
2020
2021
2022 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
$9,896 ($108,664) ($48,733) ($39,675) ($20,771) ($25,753) ($12,743) ($11,981) $1,744 ($2,358)
35,504 27,984 (1,543) 9,957
61
53 (29) (535) (1,032) (1,581)
(10,951) 1,060 (5,908) (4,102) (920) (639) (223) 2,842 3,837
21,745 3,775 5,082 5,394 5,539 5,254 5,558 5,569
368 (893) 1,544 2,022 2,536 (1,625) (694) (625)
38,141 25,871 21,865 22,847 19,778 15,979 16,467 18,956
7,748
493
20,097
16,686
5,837
(3,713)
(1,193)
4,477
12,894
112,596 80,469
1,105
4,818
132
2,524
525
1,764
$87,975
470,636
19%
7,748
924
1,356
237
3,000
758
1,795
40
852
369
400
$47,707 $63,705
575,080 619,979
8%
10%
52
1,356
6 | | |
30
364
40
92
991
237
636
804
3,000
|||
628
||
Q2'23
$1,395
(2,152)
107
400
217
5
$15,121 $7,020 $2,253 $18,080 $16,906 $26,466 $21,868 $29,645
147,879 142,137 155,427 162,649 155,277 146,626 165,936 168,854
10%
5%
1%
11%
18%
11%
18%
13%
(1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concluded in 2022. (2) In December 2022, we fully impaired our investment in Mylo and incurred a loss of $3.0 million as the fair
value of our investment was determined to be zero based upon an observable sale of their common equity. (3) Restructuring expenses relate to certain one-time severance events for different components of our business. Such expenses are not expected to
recur in the near or longer term. In the first half of 2020, we restructured our United Kingdom business, mainly in our leadership and technology team. In the fourth quarter of 2020, we incurred $2.0 million in severance costs related to a reduction in
headcount in our U.S. workforce. In the second quarter of 2022, we incurred $1.0 million in severance costs related to a reduction in our U.S. workforce. the third quarter of 2022, we incurred $0.8 million in severance costs related to a reduction in our U.S.
workforce. For 2023, restructuring expenses related to the reduction of our U.K. headcount, which is expected to be substantially complete by December 31, 2023. (4) Legal reserves and settlements include costs accrued or paid for potential litigation
settlements, and are net of insurance recoveries, if any. (5) IPO-related costs include certain non-recurring expenses which occurred in connection with our IPO in 2021. (6) In 2020, certain other non-recurring expenses consisted of a loss on sale from the
disposal of Beaumont. In 2021, certain other non-recurring expenses consisted of the early termination of our U.K. lease agreement. In 2022, certain other non-recurring expenses consisted of compensation expense was recorded in sales and marketing
expenses related to the departure of a member of management.
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